Knight Frank and Bayleys Finalise McGrath Acquisition and Unveil New Board Members

McGrath's newly appointed board of directors will include McGrath founder and CEO John McGrath, Knight Frank Australia CEO James Patterson, Knight Frank's Global Head of Residential Rupert Dawes, Bayleys Managing Director Mike Bayley, and Bayleys Finance Director Ken MacRae.

John McGrath will remain as Chief Executive and Managing Director of McGrath, holding on to his 23.3% stake in the company.

Knight Frank, a leading independent global property consultancy, and Bayleys, New Zealand's largest full-service real estate company, have successfully acquired a controlling stake in the Australian residential real estate group McGrath Limited through a scheme of arrangement.

After receiving shareholder and regulatory approvals, the scheme of arrangement became legally effective on June 17. McGrath Shares were suspended from the ASX on June 18, and the acquisition was completed on June 27.

The new board of directors at McGrath will include McGrath founder and CEO John McGrath, Knight Frank Australia CEO James Patterson, Knight Frank Global Head of Residential Rupert Dawes, Bayleys Managing Director Mike Bayley, and Bayleys Finance Director Ken MacRae. John McGrath will remain as CEO and Managing Director, retaining his 23.3% shareholding in the company.

John McGrath expressed excitement about the partnership, highlighting the global network and sophisticated international buyers that Knight Frank brings, as well as the strong market presence of Bayleys in New Zealand.

He emphasised that the partnership will enhance their ability to compete in the premium real estate market and aims to establish McGrath as Australia's leading real estate brand.

Knight Frank and Bayleys have had a strategic relationship since 2018. This acquisition marks McGrath's return to private ownership after being listed on the ASX since 2015.

The move underscores Knight Frank's commitment to Australia, which now hosts its largest presence outside the UK.

The combined network of Knight Frank, Bayleys, and McGrath boasts 276 offices across Australia, New Zealand, and the Pacific Islands.

James Patterson, CEO of Knight Frank Australia, stated that the acquisition strengthens Knight Frank's international expansion, allowing them to leverage their expertise and extensive reach to create significant opportunities for McGrath and their clients. He also noted the cultural alignment and shared values among the three companies.

Bayleys, which began 50 years ago in Auckland, has grown to encompass 105 offices across New Zealand and the Pacific Islands, with over 2,300 employees and an annual transaction volume exceeding $15 billion.

Mike Bayley, Managing Director of Bayleys, highlighted the mutual benefits of the partnership, including shared ideas, innovation, and systems, which will add considerable value to their customers and agents across Australasia. He also noted the close alignment of values between Bayleys and McGrath.

The partnership between Knight Frank, Bayleys, and McGrath represents a significant milestone in the real estate industry, combining the strengths and networks of three leading companies to offer unparalleled services and opportunities across the region.